Good Drinks sets big earnings goals

Good Drinks Australia is banking on increased revenue streams in a bid to reach a new EBITDA target of between $25 million and $30 million in the next three years.

Good Drinks Australia recorded a 28 per cent lift in revenue for FY22, but a bigger marketing budget and the end of JobKeeper payments drove down underlying earnings.

The group hopes that increasing its marketing spend, which increased from $9.9 million in FY21 to $13.4 million for the past financial year, will help maintain its status amid what it described as ‘competitive market forces’.

Good Drinks was ranked as the largest drinks supplier in the WA craft beer market and total sales reached 13.2 million litres, an increase of 15.7 per cent from 2021.

Revenue per litre in Good Drinks’ flagship products, Single Fin and Matso’s Ginger Beer, was reduced from $3.16 per litre to $3.00 during the period.

But the company expects to recover these costs through new higher-margin products set to launch this financial year.

Good Drinks was the fourth largest brewing business in Australia at the end of the last financial year.

On the market, shares in Good Drinks Australia last traded at 70 cents.

More to come.